2019-11-21 11:34:00 Thu ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
Berkeley macro economist Brad DeLong sees no good reasons for an imminent economic recession with mass unemployment and even depression. The current U.S. economic expansion can be sustainable over the longer run when the Trump administration helps direct people and resources from low to high-marginal-return productive activities. There is no clear sign of an economic recession with higher unemployment in light of moderate wage inflation, low price inflation below the 2% target, and reasonable real economic output. These fundamental considerations suggest that the current U.S. economic boom is likely to sustain at least over the medium term.
However, envy and greed are often the muses that almost always convince some stock market investors to buy equity stakes at the peak of an asset bubble. Later these stock market investors would wonder why there are no hints of the probable risks or black swans. The same economic rationale also applies to more generic investors who retain an active interest in bonds, currencies, futures, and precious metals such as gold, silver, and platinum etc.
As the Federal Reserve maintains the current dovish interest rate adjustments with Treasury fiscal stimulus packages such as tax cuts and infrastructure expenditures, an economic recession cannot be imminent under normal labor market conditions.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at [email protected] so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-01-02 06:28:00 Wednesday ET
New York Fed CEO John Williams listens to sharp share price declines as part of the data-dependent interest rate policy. The Federal Reserve can respond to
2019-11-17 14:43:00 Sunday ET
New computer algorithms and passive mutual fund managers run the stock market. Morningstar suggests that the total dollar amount of passive equity assets re
2018-04-17 12:38:00 Tuesday ET
Value investment strategies make investors wiser like water with core fundamental factor analysis. Value investors tend to buy stocks below their intrinsic
2020-02-19 14:35:00 Wednesday ET
The U.S. bank oligarchy has become bigger, more profitable, and more resistant to public regulation after the global financial crisis. Simon Johnson and
2020-02-26 09:30:00 Wednesday ET
Goldman Sachs follows the timeless business principles and best practices in financial market design and investment management. William Cohan (2011) M
2020-02-12 09:31:00 Wednesday ET
Mark Zuckerberg develops Facebook as a social network platform to help empower global connections among family and friends. David Kirkpatrick (2011) T